Crude oil is poised for the biggest monthly advance since October as the U.S. economy starts to recover and fuel inventories fall.
Federal Reserve Chairman Ben S. Bernanke said this week the U.S. economy is in a “nascent” recovery. The U.K. emerged from recession in the fourth quarter at a faster pace than previously estimated, a report today showed. The amount of crude stored in tankers fell to 25 million barrels this month from levels of more than 80 million barrels last year, Poten & Partners said.
“Oil has recovered because of the first signs of economic growth,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “Stocks in floating storage have been diminishing.”
Crude oil for April delivery advanced 28 cents, or 0.4 percent, to $78.45 a barrel in electronic trading on the New York Mercantile Exchange as of 10:52 a.m. in London. A close at that level would mean an increase this month of 7.6 percent.
